China’s Ganfeng Lithium has completed a $180 million (€153 million) investment in Lithium Argentina, adding long-term financing to the Canadian-listed producer while creating a pathway for Ganfeng to increase its ownership. The transaction is structured as a six-year unsecured convertible note with an annual interest rate of 4%. The note is convertible into Lithium Argentina shares at $12.50 per share.
If fully converted, the financing could result in Ganfeng receiving approximately 14.4 million additional Lithium Argentina shares. Ganfeng currently holds about 9.6% of the company, while full conversion would raise its interest to approximately 16.1% on a diluted basis.
Financing Supports Debt Repayment
Lithium Argentina plans to combine the investment proceeds with cash already on its balance sheet to repay $259 million of convertible notes due in January 2027. The refinancing replaces a near-term maturity with financing carrying a longer maturity and a 4% annual interest rate. The additional financing capacity also provides the company with greater flexibility as it considers a second-stage expansion of the Cauchari-Olaroz lithium operation in Jujuy. Ganfeng and Lithium Argentina already have interests linked to Cauchari-Olaroz, while their relationship also extends to the Pozuelos-Pastos Grandes (PPG) development in Salta.
Pozuelos-Pastos Grandes Joint Venture
The companies are consolidating their interests in Pozuelos-Pastos Grandes through a joint venture that is expected to close by the end of September. Development of PPG is expected to proceed in phases as the partners consider long-term lithium demand projections alongside the price volatility that has affected the market following its earlier peak. The project is located in Salta, while Cauchari-Olaroz is in Jujuy, giving the partnership exposure to two of Argentina’s lithium-producing and development districts.
Potential European Supply Implications
Additional lithium production from Argentina could provide material for European cathode, battery and vehicle manufacturing plants. At the same time, Ganfeng’s increasing ownership in Lithium Argentina could keep future material commercially connected to Chinese refining and battery supply networks unless European customers establish binding offtake agreements.
The investment therefore strengthens Lithium Argentina’s financing position while giving Ganfeng a defined mechanism to increase its stake in the producer.
Stock Market Listings
Lithium Argentina is listed on both the Toronto Stock Exchange and New York Stock Exchange under the ticker LAR. Its Canadian disclosures are available through SEDAR+, while its US filings are submitted to the Securities and Exchange Commission. Ganfeng Lithium is listed in mainland China and Hong Kong, trading under Shenzhen ticker 002460 and Hong Kong ticker 1772. The $180 million financing provides Lithium Argentina with additional project-level funding without requiring an immediate public equity issuance, while leaving Ganfeng with a route to increase its ownership of the Canadian-listed lithium producer.
